Vipul Garg (Company Secretary) (60 Points)
20 January 2011Hi to everyone
Pls tell me the time limit for allotment of equity shares under section 81(1A) read with rules for the unlisted public company.
Regards
Preet Kanwar Singh
(Company Secretary)
(161 Points)
Replied 24 January 2011
A public unlisted company has to within one month from the date of first allotment and within one year from the formation wants to issue further shares to outside shareholders.
As the allotment is to outside shareholders, section 81(1) is not applicable as this section deals with allotment to inside shareholders.
The allotment is within the time period specified in section 81(1). Hence, Ramaiya in its scope of section states that the requirement's of this section is not applicable.
waiting for expert's views
Vipul Garg
(Company Secretary)
(60 Points)
Replied 25 January 2011
Dear Friend
I am talking about for the preferential allotment under section 81(1A) of the Comapnies Act, 1956...Further i am talking for the unlisted companies as for the listed companies there is a time period of 15 days in the ICDR regulations.
Waiting for Reply
Jayashree S Iyer
(Company Secretary)
(3224 Points)
Replied 25 January 2011
There has been queries relating to this previously also. To my knowledge there is no time limit specified in the Companies Act, 1956. Allotment must be made within a reasonable time.
Vipul Garg
(Company Secretary)
(60 Points)
Replied 25 January 2011
But what should be the reasonable time whether it may be 6 months or more than 6 months..
Abhishek
(CS)
(40 Points)
Replied 25 January 2011
there is specific rules for preferential allotment by the unlisted companies, please go and search on google. I remember that the time limit for special resolution passed u/s 81(1A) is 1 year. for more details please read rules
Vipul Garg
(Company Secretary)
(60 Points)
Replied 25 January 2011
No there is no time limit in the rules , i have read them ,,......
Abhishek
(CS)
(40 Points)
Replied 25 January 2011
vipul please read every thing care fully please read pint no 4 page 2 heading special resolution
Preet Kanwar Singh
(Company Secretary)
(161 Points)
Replied 25 January 2011
Special Resolution (Rule 4) : "As per these rules, the special resolution shall be acted upon within 12 months. However, sub-section (1A) has not prescribed a necessary provision in the Articles of Association before a special resolution is passed for issue of shares on preferential basis. The 12 months period is sufficient within which the proposal is to be implemented. The funds may be received in phases and accordingly allotments made for issuance of shares or other convertible securities, as the case may be..."
as such there is no specific time period but co. can allot it within one year of passing SR otherwise a fresh resolution is required to be passed..
Vipul Garg
(Company Secretary)
(60 Points)
Replied 27 January 2011
yes i have also read , special resolution shall be acted upon with in a period of 12 months ....
Trupti Sharma
(Chartered Accountant)
(95 Points)
Replied 12 June 2013
Dear Professionals,
What if the company allotted shares before receiving the share application money, and that the share application money is received after a month?
Waiting for your reply.
Jaideep
(Service)
(1368 Points)
Replied 13 June 2013
Dear All,
I would like to bring your attention to MCA Notification 14th December,2011
Rule 8 (4)
CAclubindia
